Irish and Northern Irish companies with employees in the US need to read this update and take immediate action if needed. And I’m not just writing that because I’m the proprietor of this blog!

Some Irish and Northern Irish employers reimburse certain US-based employees for premiums paid for individual health insurance policies (whether sold in the marketplace or sold through a State Exchange), or directly paying the employee’s individual premiums to the carrier. That reimbursement/payment is prohibited by the US Internal Revenue Service effective July 1, 2015.

The IRS will allow payment of additional compensation which could be used to pay premiums, but the compensation cannot be fettered to the payment of premiums. There is a heavy excise tax on the employer for violations–$100 per day per affected employee per year. This prohibition arises under the 2010 Affordable Care Act.

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About Mike

Michael Burke is a partner in the Corporate Practice of Arnall Golden Gregory, LLP, in the Washington, DC office. He provides creative, effective, efficient, and 'business-sensible' legal advice so companies of all sizes, including emerging growth companies, can turn legal challenges into business opportunities. He has a specific focus on advising Irish and Northern Irish companies on doing business in the United States.

He is a past chair of the 23,000-member American Bar Association Section of International Law, and was the youngest person elected chair of that Section. Mr. Burke has an AV Preeminent™ Rating from Martindale-Hubbell; was named to Washington DC Super Lawyers by Thomson Reuters; was awarded the Business & Finance Magazine Global 100 Irish Business Leaders 2014; and was named to the Irish Legal 100 in 2012 and 2013.

His father's family is from Cahir, Tipperary, and his mother's family is from Castlerea, Roscommon.